The funding rates metric serves as a crucial indicator of sentiment in the futures markets. Analysing its recent behaviour offers key insights into Ethereum’s potential next moves.
Notably, both the price and the funding rates have been mirroring the patterns observed during the September to November 2024 period, a phase marked by prolonged consolidation and deep corrections that ultimately preceded a strong bullish rally.
Such market conditions often reflect smart money accumulation, as informed investors take advantage of panic-driven selling and widespread distribution among retail participants. Currently, funding rates have dropped to near-zero values and are consolidating, suggesting that the market may once again be entering an accumulation phase.
However, it is important to note that within such phases, further downside remains possible. The price may dip lower before a meaningful rebound occurs, offering even more attractive levels for accumulation by long-term investors.
Written by ShayanBTC
